A historic day for the Indian crypto community.On Wednesday, the Supreme Court of India finally ruled on the case against the banking ban by the Reserve Bank of India,The court held that the RBI circular which places a banking ban on the crypto industry is unconstitutional.
Supreme Court Rules: Big Win for Indian Crypto Community
Breaking: Supreme Court of India has struck off Reserve Bank of India’s (RBI) banking ban against crypto. The court held that RBI circular dated 6th April 2018 is unconstitutional.
The supreme court concluded hearing the arguments against the RBI ban on Jan. 28, after almost two years since it first decided to listen to the case. The court heard extensive arguments from the counsel for the web and Mobile Association of India (IAMAI), Ashim Sood, followed by the counsel representing several crypto exchanges, Nakul Dewan. It also heard the arguments in favor of the ban from the central bank’s counsel, Shyam Divan.
The RBI issued a circular in April 2018 banning regulated financial institutions from providing services to crypto businesses. The ban went into effect three months later and banks subsequently closed the accounts of crypto exchanges, forcing a number of them to pack up , including Zebpay, Coindelta and Koinex
India’s Crypto Regulatory Framework
Cryptocurrency enthusiasts everywhere the World are eagerly waiting to ascertain what India will do about cryptocurrency. The Indian government has been sitting on a draft bill that seeks to categorically ban cryptocurrencies, except state-issued ones, since February last year. The “Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019” was drafted by an interministerial committee (IMC) tasked with studying all aspects of cryptocurrency and providing recommendations for India’s crypto policy. The IMC was headed by former Finance Secretary Subhash Chandra Garg who has since resigned from his position in government. Nonetheless, he still holds the view that cryptocurrencies have “a very short future,” believing that they’re “essentially worthless codes.”
The bill also provides for the RBI to issue a financial institution digital currency. The RBI has already been looking into this area, Governor Shaktikanta Das revealed in December last year. “As and when the technology evolves with adequate safeguards, i feel it’s a neighborhood where the Federal Reserve Bank will definitely check out seriously at an appropriate time,” he said.
This bill was expected to be introduced within the winter session of parliament last year but wasn’t , and therefore the government has since been silent about it. The crypto community believes that the bill is flawed and has been campaigning for the govt to re-evaluate the IMC recommendations. Meanwhile, both the RBI and therefore the Indian government have confirmed several times that cryptocurrencies, like bitcoin, aren’t banned in India.
Thriving Crypto Industry in India
Even with a banking ban, the Indian crypto community found how to continue buying, selling, and trading bitcoin and other cryptocurrencies. variety of crypto exchanges launched peer-to-peer trading so as to continue providing INR access to their users.
Several exchange service providers recently made announcements regarding their services. for instance , the U.K.-based banking platform Cashaa has been expanding its operations in India and is now offering no-fee deposits and withdrawals. the corporate is additionally planning a roadshow this month to organize Indian crypto users for subsequent Bull Run . Global exchange Binance and popular Indian exchange Wazirx have joined forces, with the latter launching India’s first initial exchange offering (IEO). The WRX token are often wont to pay trading fees on Wazirx at a 50% discount.
Furthermore, Zebpay, formerly one among the most important bitcoin exchanges within the country, relaunched in India on Monday, before the supreme court judgment. The exchange pack up its local operations in September 2018, shortly after the RBI ban went into effect. For the relaunch, the platform is offering five crypto-to-crypto trading pairs with no trading fees for the whole month.
What does one consider the Indian supreme court’s ruling today? Did you expect the court to rule out favor of the crypto industry? allow us to know within the comments section below.
This text is for informational purposes only. it’s not a suggestion or solicitation of a suggestion to shop for or sell, or a recommendation, endorsement, or sponsorship of any products, services, or companies. Bitcoin.com doesn’t provide investment, tax, legal, or accounting advice. Neither the corporate nor the author is responsible, directly or indirectly, for any damage or loss caused or imagined to be caused by or in reference to the utilization of or reliance on any content, goods or services mentioned during this article.